As travel complexity and business expectations increase, many travel managers say the managed travel model hasn’t kept pace. Fragmented systems, mounting costs, and rising traveler expectations are prompting organizations to reassess what they need from their travel programs and their partners.
With corporate travel at a crossroads, the Global Business Travel Association conducted research in partnership with Direct Travel, Spotnana, and TROOP. Here are the top takeaways from our 2025 Perfect Business Trip Report:
The Top Challenges for Travel Managers
For nine out of ten travel managers, one of the biggest pain points is rising airfares and hotel rates, and more than half say it’s their single greatest challenge. Yet even with the perception that travel prices are increasing, over the past two years there is evidence that prices have actually stabilized. When adjusted for inflation, U.S. domestic airfares fell 2.3% last year, marking the second straight year when airfares declined. A similar trend was seen with hotels. The Average Daily Rate (ADR) grew only 1.7% in the U.S. last year, lower than the overall rate of inflation.
In the report, travel managers were also asked where they experience the greatest booking friction in their program. The top areas are:
- Booking guest travel online (57%)
- Managing travel disruptions (55%)
- Filing expense reports (50%)
- TMC servicing (50%)
Another significant challenge for travel managers is hotel leakage. Only 18% said leakage declined over the past year, and 81% said it grew or remained the same. The top reasons for leakage are employees finding better pricing out-of-policy and a lack of self-service capabilities.
This is an area where travel managers should be able to lean on their TMC partner. At Direct Travel, our next-generation platform Avenir: Travel Edition enables greater self-service capability by offering self-service cancellations and changes. This greatly reduces service calls by eliminating the need to contact an agent in order to modify a booking.
Travel Managers are Looking for More from their TMC Partner
More than a quarter of travel managers are likely to switch TMCs or are actively considering it. One of the reasons for this is that many travel programs are currently experiencing pain points with their TMC’s service. When asked for the top frustrations, travel managers cite inconsistent service, outdated technology, and a poor user experience.
The three most important innovations that travel managers want when it comes to TMC servicing are proactive disruption management, risk management/duty of care, and the ability to easily service NDC bookings. This reinforces the importance of having access to a platform with a wide range of travel content sources, with not only NDC integrations but a GDS, low-cost carriers, aggregators, and other direct connections. This provides greater choice, simplifies the shopping experience, and unlocks a broad range of fares.
Meetings and Expenses Need a Rethink
Three in five travel managers say they are at least somewhat involved with planning, organizing, or overseeing meetings and events at their organization. Yet, many companies surveyed say that business travel and meetings are processes that are mostly siloed from one another.
In particular, small meetings are often unmanaged, which poses a number of challenges for travel managers such as:
- Lost savings
- Lack of data collection
- Inefficient planning processes
- Scattered expense tracking
- Poor understanding of ROI
Expense reporting also remains a source of friction for travel managers, who describe the current process as manual and time-consuming, with limited visibility into real-time spending. The top three innovations that travel managers are interested in offering through their program are automated receipt capture, seamless integration with accounting software, and an all-in-one card, travel, and expense integration with booking systems.
In Pursuit of The Perfect Trip
The findings from our 2025 Perfect Business Trip Report make it clear that travel managers are being challenged to do more, yet many programs are held back by outdated systems, limited self-service options, and fragmented processes. By partnering with a TMC that offers both innovative technology and best-in-class service, managers can ensure they are well equipped to meet the demands of modern business travel.
To learn more about the top sources of traveler frustration, where travel programs are falling short, and recommendations for building better business trips, download the Perfect Business Trip Report.
